$2.5bn Kazakhstani coal power plant cancelled

Samsung C&T Corp and Samsung Engineering Co Ltd have decided to terminate a coal-fired power plant project in Kazakhstan worth $2.5bn due to a loss of ‘economic rationale.’

Reuters reports that the companies signed up for construction of the 1320 MW Balkhash Thermal Power Plant, in Ulken, Kazakhstan in December 2014.
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However in the regulatory filings, Samsung C&T and Samsung Engineering said in they have terminated the contract as of Wednesday.

A Samsung C&T spokeswoman told Reuters the company decided to drop the contract as factors such as low oil prices and a delay in regulatory approval undermined the business rationale.

Samsung C&T said in another filing that it exercised a put option for its stake in the power plant's joint stock company, that placed the construction order to the Samsung companies, to state-owned Samruk Energy for $192.5m.

How will Asia meet its power demands? Find out more at Asia Power Week http://bit.ly/2bOte37

 



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